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In this segment, Sky Morton discusses copyright transfers under U.S. law, explaining the "baloney theory" of copyright, where it can be divided into infinite portions. When transferring exclusive rights, such as the right to exploit a video, a piece of copyright is conveyed, distinguished from a non-exclusive license. All exclusive transfers must be in writing and signed by the copyright owner. Ownership of copyright signifies that the owner retains all rights not transferred. An example is promised to illustrate these points further.